SODIC, Solidere agreement for co-development

The signing took place on April 26th, 2007.

Solidere is internationally renowned for its successful redevelopment of the war ravaged city centre of Beirut into a thriving modern city centre harmoniously integrating a mix of residential, commercial, office, retail, touristic and entertainment activities. Solidere's insistence on meticulous attention to urban planning, high quality public space, aesthetic and design detail is one of the main success factors and resulted in the creation of a new standard of living and vibrant city centers. The experience gained in the last twelve years has enabled Solidere to develop close relations with a large number of the world's leading architects, planners and real estate consultants resulting in not only an architectural showcase but equally a major commercial success much sought after and achieving some of the highest sales values and lease rates in the Middle East. As a result Solidere is rapidly expanding its international operations with projects in Egypt, the Gulf, Saudi Arabia, Jordan and various Mediterranean locations.

The projects that are the subject of this agreement are located in the heart of the primary suburban growth areas of Cairo. The project to the West of Cairo is located on a 1.2 million sqm site in the 6 October/Sheikh Zayed City area on the Alexandria highway, a short distance away from Smart Village business park. The project to the East of Cairo is located on an 858,900 sqm site in the New Cairo/Katameya area, immediately adjacent to the new American University in Cairo campus and a number of important residential communities. The design and planning of both projects are already under way and they will be developed over the next five years with an expected investment cost of over EGP8 billion.

The two suburbs in which the projects are located represent the future of Cairo and are planned to absorb the capital's future growth and alleviate the congestion from which it increasingly suffers. Current trends support our conviction that these suburbs are destined to become self sufficient cities in their own right with populations in excess of 2.5 million persons each in the next 10 years. (To provide a scale reference for the projects it is noteworthy that the island of Zamalek has a total area of 2.7 mn sqm)

SODIC and Solidere jointly recognize the potential for each site to become the 'city center' of the suburb in which it is located. These planned mixed-use urban destinations will each comprise the whole range of activities typical of such a 'city center' including residential units of varying types, office and commercial facilities, retail, entertainment and other support facilities and services. The projects will be developed in strict adherence to Solidere's uncompromising standards of architectural and operational excellence and quality control. They will benefit from Egypt's excellent weather and convivial social traditions which will allow an open air, pedestrian urban setting reminiscent of the golden age of Cairo's urban planning.

Under the terms of the co-development agreement Solidere will be responsible for the master-planning, development and property management of the projects while SODIC will be responsible for financing, construction and general management. Both companies will collaborate on the commercialization of the projects including the development of marketing, sales and leasing strategies.

Maher Maksoud, SODIC's Managing Director, commented

"Our collaboration with Solidere on these important projects stems from our unwavering commitment to changing for the better the future urban landscape of Cairo. Solidere brings to the table unrivalled expertise in developing vibrant, 21st century urban centers. We are delighted to have them as our exclusive partners in East and West Cairo."

Nasser Chammaa, Solidere Chairman and General Manager commented: "We have built up considerable expertise, know - how and have developed strategic relationships during our endeavour to rebuild Beirut's city centre. These assets are invaluable and we are tremendously excited at the prospect of using bringing these skills to Cairo and helping to address some of the urban challenges."